City of Windsor officials set to discuss 2022 budget as inflation dramatically impacts operations

Windsor, Ont. –

As the rate of inflation pushes up prices, Windsor city officials are expected to discuss 2022 finances.

On Friday, Mayor Drew Dilkens will be joined by Executive Director Jason Reynar and CFO Joe Mancina to make a detailed presentation regarding the 2022 municipal capital and operating budget.

“The budget that we are going to present to the city council is much lower than the commitment I made at the start of my mandate,” explains Dilkens. “Which should lead to budgets equal to or lower than the rate of inflation. “

Inflation is accelerating at a rate not seen in nearly two decades, with prices up 4.7% in October from the previous year. In the 2018 municipal election, Dilkens campaigned to keep tax increases at or below the rate of inflation.

“I would say anything over 2% would be irresponsible and everything down to zero would be irresponsible because we couldn’t run the company properly without making service cuts,” he says.

The impacts on the city’s operations are significant according to Dilkens.

“We need $ 1.2 million more just to buy the same amount of fuel for our fleet in 2022 that we used in 2021,” he says.

Inflationary pressures are impacting the city’s 2022 budget on a variety of essential services, according to the mayor’s office. It is estimated that refueling of Transit Windsor buses and the city’s municipal fleet will increase by 35%.

As the price of materials, parts and labor has risen, so have the costs. Officials say that last year, the escalation in construction costs was 2.6 percent. For 2022, according to independent estimates, it is around 7.7%.

“This is not the year to add all kinds of wishlist expenses,” says Dilkens. “This is the year to be careful, to think back to when we live with this rate of inflation and to make sure that we only do what is essential.”

Electricity and natural gas bills are expected to rise 4.2% or $ 705,000 to power the city’s facilities and buildings.

The mayor’s office adds that municipalities across Canada are facing rising insurance costs from private sector businesses, saying Windsor needs to budget about $ 1.7 million more in 2022 to make payments of insurance next year, an increase of about 30% compared to 2021.

“I know the pain is there and I want to make sure that when it comes to our budget, we can operate the city effectively and efficiently, but without imposing an undue tax burden on the residents of this city.” said Dilkens.

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